Transocean
RIG, -2.02%
jumped 4.4% after state-run oil company Petrobras
PBR, -1.60%
said it would support the deepwater drilling firm in its legal fight in Brazil surrounding the offshore Frade oil spill last year.

Transocean ran into trouble while working on a Chevron Corp.
CVX, -1.12%
well in the Frade field off the coast of Brazil late last year, when an estimated 3,000 barrels spilled into the ocean.

Criminal cases are being pursued against 17 employees from Chevron and Transocean, while Brazilian regulators are attempting to get $20 billion in damages from the companies.

Reuters reported that the exploration and production chief for Petrobras had voiced support for Chevron and Transocean.

“We appreciate our customer’s support and we repeat that this case is without merit,” a Transocean spokesman said in an email to MarketWatch.

Besides the hefty damages, Transocean and Chevron also face an injunction that would prevent them from working in Brazil. Transocean operates 10 deepwater rigs in Brazil out of its global fleet of about 128.

Also on the move on Thursday, Venoco Inc.
VQ
rallied 15% after the oil and natural gas producer said its executive chairman Timothy Marquez is in advanced discussions to line up financing to close his purchase of the company as soon as September.

In June, Venoco holders approved a plan to Marquez to buy the company for $12.50 a share.

Among the major energy sector benchmarks, the NYSE Arca Oil Index (XOI) rose 0.8%, the NYSE Arca Natural Gas Index (XNG) advanced by 1% and the Philadelphia Oil Service Index
OSX, -1.40%
moved up by 1.7%.

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